Rupee ends firmer on inward remittances

Reuters: The rupee ended slightly higher on Monday as inward remittances surpassed importer dollar demand, dealers said.

The rupee closed at 141.24/28 per dollar, compared with Friday’s close of 141.25/30.

Dealers said the two State-run banks, through which the Central Bank directs the market, were not seen selling dollars, but dollar selling by other banks helped the currency rise.

“Rupee was firmer on inward remittances; latter part of the day we have seen a state bank covering import bills due to today’s inflows,” said a dealer who declined to be identified.

The rupee hit a record low of 141.40 per dollar on 28 September, but has recovered over the past few days after a State-run bank sold dollars.

The Finance Ministry on Friday imposed a 100% margin on letters of credit for motor vehicles to discourage unnecessary imports, in a move to prevent dollar outflows and further weakening of the rupee.